Environmental Health Advocates, Inc. v. Sream, Inc.

CourtCalifornia Court of Appeal
DecidedSeptember 26, 2022
DocketA163346
StatusPublished

This text of Environmental Health Advocates, Inc. v. Sream, Inc. (Environmental Health Advocates, Inc. v. Sream, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Environmental Health Advocates, Inc. v. Sream, Inc., (Cal. Ct. App. 2022).

Opinion

Filed 9/26/22 CERTIFIED FOR PUBLICATION

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

FIRST APPELLATE DISTRICT

DIVISION TWO

ENVIRONMENTAL HEALTH ADVOCATES, INC., Plaintiff and Appellant, A163346

v. (Alameda County SREAM, INC., Super. Ct. No. HG20079925) Defendant and Respondent.

Environmental Health Advocates, Inc. (EHA) filed a private enforcement action against Sream, Inc. (Sream), alleging Sream had failed to provide a warning that its water pipe products exposed consumers to marijuana smoke in violation of California’s Safe Drinking Water and Toxic Enforcement Act of 1986 (Health & Saf. Code, § 25249.5 et seq.), 1 commonly known as Proposition 65 based on its enacting initiative. The trial court granted Sream’s motion for judgment on the pleadings, finding EHA had not alleged that Sream’s water pipes require marijuana to function or can only be used with marijuana. The trial court concluded that, under the facts as alleged by EHA, Sream’s water pipe products were not subject to Proposition 65. It dismissed the action with prejudice.

1 Further undesignated code references are to the Health and Safety Code.

1 EHA now challenges this ruling on appeal, arguing that the trial court (1) erred in applying the wrong test to determine whether a Proposition 65 warning was required for Sream’s products and making disputed factual findings under that test; and (2) abused its discretion in denying EHA’s request for leave to amend. We affirm. BACKGROUND A. Proposition 65 Proposition 65 was enacted as an initiative measure in 1986 and added sections 25249.6 through 25249.13 to the Health and Safety Code. (Nicolle- Wagner v. Deukmejian (1991) 230 Cal.App.3d 652, 654–655 (Nicolle- Wagner).) Section 25249.6 provides: “No person in the course of doing business shall knowingly and intentionally expose any individual to a chemical known to the state to cause cancer or reproductive toxicity without first giving clear and reasonable warning to such individual, except as provided in Section 25249.10.” 2 Section 25249.12 requires the Governor to designate a “lead agency” to implement the provisions of Proposition 65. That agency has the authority to “adopt and modify regulations, standards, and permits as necessary to conform with and implement this chapter and to further its purposes.” (§ 25249.12, subd. (a).) The Governor originally designated the Health and Welfare Agency as the lead agency for Proposition 65. (Nicolle-Wagner, supra, 230 Cal.App.3d at p. 655.) In 1995, the California Environmental Protection Agency’s Office of Environmental Health Hazard Assessment

2Section 25249.10 sets forth certain exemptions not relevant here, including exposures “for which federal law governs warning in a manner that preempts state authority.” (§ 25249.10, subd. (a).)

2 (OEHHA) was designated as the lead agency. (Cal. Code. Regs., tit. 27, § 25102, subd. (o).) 3 Section 25249.8 also requires the Governor to “cause to be published a list of those chemicals known to the state to cause cancer or reproductive toxicity within the meaning of this chapter,” which is to be “revised and republished in light of additional knowledge at least once per year thereafter.” (§ 25249.8, subd. (a).) “Marijuana smoke” was added to the list of carcinogens in 2009. (Regs., § 27001, subd. (b).) In 2016, OEHHA adopted regulations concerning “ ‘safe harbor’ ” warnings as set forth in article 6 (Regs., §§ 25600–25607.35). 4 (OEHHA, Final Statement of Reasons, 27 Cal. Code Regs., art. 6 (Sept. 2016) p. 9 (2016 FSOR).) Among other things, they contained definitions relevant to article 6 and set forth a new regulation “addressing the relative responsibility of product manufacturers and others in the chain of distribution, versus the product retail seller.” (2016 FSOR, supra, p. 9.)

3Further references to “Regulations” are to title 27 of the California Code of Regulations except as otherwise specified (e.g., Regs., § 25102). 4 As explained above, Proposition 65 requires “clear and reasonable” warnings. (§ 25249.6.) Article 6 describes “ ‘safe harbor’ ” warnings, which are deemed by the lead agency to meet this “clear and reasonable” standard. (Regs., § 25600, subd. (a).) In enacting these regulations, the original lead agency explained: “it is necessary to provide businesses with an opportunity to be certain that the warning which they give is reasonable or clear, or both,” and “providing general ‘safe harbor’ warning methods and messages which are deemed sufficient without further proof is a reasonable means to accomplish this result.” (Health & Welf. Agency, Revised Final Statement of Reasons, 22 Cal. Code Regs., Div. 2 (Nov. 1988) pp. 7–8 (1988 RFSOR).) In other words, businesses are not required to give “safe harbor” warnings and they are not the only “clear and reasonable” warnings available. (Id. at p. 8.) “The ‘safe harbor’ is offered simply to provide the businesses choosing to use them reasonable certainty that they will not be subjected to an enforcement action over the warning they provide.” (Ibid.)

3 B. EHA’s Enforcement Action EHA filed a complaint against Sream on November 12, 2020, asserting a single cause of action for violation of Proposition 65. The complaint alleged that Sream “exposes consumers to marijuana smoke by manufacturing, importing, selling, and/or distributing Roor Classic Straight 5mm Orange & Blue and other similar bong/water pipe products (‘Products’).” It further alleged that this exposure constituted a violation of section 25249.6 because Sream had failed to provide a clear and reasonable warning to consumers and individuals in California “who may be exposed to marijuana smoke through reasonably foreseeable use of the Products.” EHA sought civil penalties for Sream’s alleged violations of Proposition 65; injunctive relief against Sream from manufacturing, importing, selling, and/or distributing the products without a clear and reasonable warning; and attorney fees and costs. C. Sream’s Water Pipes Sream is based in California and manufactures water pipes with the Roor trademark as the exclusive licensee of the brand within the United States. A water pipe typically consists of a chamber that contains water, along with a mounted bowl that contains a particular substance. A user can burn the substance and create suction to draw smoke through the water, where the smoke is cooled before it is ultimately inhaled. According to Sream, its packaging and labels have long included the statement that such products “should be sold, marketed or used for legal, non-prohibited use only.” Since July 2020, Sream has also placed the following label on its products as a “purely defensive” measure: “WARNING: This product can expose you to chemicals including arsenic, which is known

4 to the State of California to cause cancer. For more information, go to www.P65Warnings.ca.gov.” 5 D. Judgment on the Pleadings Sream moved for judgment on the pleadings, arguing that Proposition 65 did not apply to its water pipe products. The trial court granted the motion. It stated: “Plaintiff does not allege that Defendant’s ‘bong/water pipe products’ that are the subject of this action contain any chemical that causes cancer or reproductive toxicity or that they necessarily emanate any such chemical. Rather, Plaintiff alleges that Defendant’s products, if used with marijuana, produce marijuana smoke, which is a carcinogen regulated by Proposition 65.

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Environmental Health Advocates, Inc. v. Sream, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/environmental-health-advocates-inc-v-sream-inc-calctapp-2022.